USA: Ex-Cutter & Buck President In Fraud Charge

Sportswear company Cutter & Buck's former president Martin Marks has been charged $65,000 for falsifying accounting records.

Marks, who is the company's third executive to be sentenced regarding the fraud case, pleaded guilty on Thursday after a 14-month investigation into an attempt to hide millions of dollars' worth of fraudulent sales in 2000.

Marks has also settled a separate civil case in which he was fined $44,777 after neither denying nor admitting allegations of violations including securities fraud.

In August, ex-chief financial officer Scott Lowber was given a three-month prison sentence after admitting his part in the fraud.

The case involved a practice of sending products far in advance of requested shipping dates and recording revenue at the time of shipment, so taking sales from future periods.

According to court records, Cutter & Buck subsequently added 12 per cent to its quarterly revenue, and 4 per cent to its annual revenue.

In its Securities and Exchange Commission settlement, the company agreed to follow the law although it did not admit to wrongdoings.

Marks, who stepped down from his position before the case came to light in 2002, pleaded guilty to plotting with Lowber to allow the returned goods to be spread amongst the company's divisions.

Marks, who resigned months before the fraud became public in 2002, admitted plotting with Lowber to aid the fraud operation.

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